Prevent Chargebacks

Prevent Chargebacks.

Reduce Risk. Increase Revenue. Ensure Sustainability.

Chargebacks are just one of the many challenges of running a successful business—but they are among the most serious threats to merchants’ sustainability. If left unchecked, chargebacks will diminish earning potential, alienate customers, negatively impact industry relations, and threaten a business’s overall longevity. That’s why it is vitally important to dedicate resources to prevent chargebacks from happening.

Do You Understand the Consequences of Chargebacks?

Chargebacks have long been considered an unavoidable cost of doing business. If this has been your philosophy, you aren’t alone.

A large segment of eCommerce merchants experience chargebacks regularly, but do little to fight back. Merchants either believe it costs too much to prevent chargebacks or transaction disputes are perceived as an inevitable fact of life.

In reality, chargebacks are preventable. Not only is it possible to reduce the risk of chargebacks, it is an essential task you must deal with. If chargeback rates spike, you can expect:

The average merchant doesn’t know what causes chargebacks, and they do not possess a sufficient understanding of chargeback prevention techniques. After all, why would they? Merchants specialise in creating, maintaining, and growing their businesses—not managing chargebacks.

However, if you can identify the source of transaction disputes, you are better equipped to prevent chargebacks.

Experts at The Chargeback Company have determined all chargebacks result from just three things:

Merchant Error:

transactions that are impacted by minor policy or procedural oversights

Criminal Fraud:

transactions that were not authorised by the cardholder

Friendly Fraud:

transactions that are disputed under false pretences or for unwarranted reasons

Managing chargebacks based on their source might seem logical and efficient, but how, exactly, do you go about identifying the source?

The Chargeback Company uses a tool called Intelligent Source Detection™, which is a combination of proprietary technology, machine learning, and human forensics. We are able to identify the true source of each chargeback—despite what misleading reason codes might imply—to resolve problems at their source.

Create a Comprehensive Plan

For example, studies have found that merchants incorrectly assumed criminal fraud was to blame for the majority of their chargebacks and so tightened their fraud filter rules as the primary chargeback prevention strategy. Ultimately, this tactic backfired. Merchants lost £95 billion to false positives while actual criminal fraud was a mere £7 billion.

Each chargeback source calls for a unique prevention strategy. The key is to deploy the right tools and expertise at the right time to address the right problem.